Rogers Sugar Income Fund
TSX : RSI.UN

Rogers Sugar Income Fund

July 03, 2008 10:29 ET

Rogers Sugar Income Fund Announces the Merger of its Wholly-Owned Subsidiaries, Lantic Sugar Limited and Rogers Sugar Ltd., and a New Bank Revolving Credit Facility of $200 Million

MONTREAL, CANADA--(Marketwire - July 3, 2008) - THIS MEDIA RELEASE IS NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Rogers Sugar Income Fund (the "Fund") (TSX:RSI.UN) announced today that effective June 30, 2008, its wholly-owned subsidiaries, Lantic Sugar Limited and Rogers Sugar Ltd., have merged into a new operating entity now known as Lantic Inc. The two companies have worked together as one for a number of years. The established trademarks of both Lantic and Rogers will continue to be used by the new entity as we leverage the historic brand awareness we enjoy in Eastern Canada with the Lantic name, and with the Rogers name in Western Canada.

On June 30th, 2008, Lantic Inc. entered into a five-year term new revolving credit facility with a syndicate of lenders for an amount of $200 million. This new credit facility replaces the $65 million private debentures of Lantic Sugar Limited that matured on June 4, 2008, and the term debt of $50 million held by Rogers Sugar Ltd. To fix interest rates on a substantial portion of the expected drawdown of the new credit facility, the Company intends to enter into a five-year interest swap agreement, over the course of the next few days, for an amount of $70 million.

The new revolving credit facility will allow the Company to better utilize available cash reserves and is estimated to reduce total interest costs by approximately $0.8 to $1 million annually.

About Rogers Sugar Income Fund

The Fund is an open-ended, limited purpose trust established under the laws of the Province of Ontario. The Fund holds all of the common shares of Lantic Inc. Lantic Inc. operates cane sugar refineries in Montreal, Quebec and Vancouver British Columbia, as well as the only sugar beet processing facility in Taber, Alberta. Lantic Inc.'s sugar products are marketed under the "Lantic" trademark in Eastern Canada, and the "Rogers" trademark in Western, and include granulated, icing, cube, yellow and brown sugars, liquid sugars and specialty syrups.

Forward-looking statement

This document may contain forward-looking statements, relating to the Fund's operations or to the environment in which it operates, which are based on the Fund's operations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, and/or are beyond the Fund's control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. These factors include those set forth in other public filings. In addition, these forward-looking statements relate to the date on which they are made. The Fund disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information

  • Mr. Daniel L. Lafrance
    Senior Vice-President of Finance and Chief Financial Officer
    and Secretary
    Lantic Inc, Administrator of Rogers Sugar Income Fund
    514-940-4844